SCHC is a ETF that follows the capitilization weighted FTSE Developed Small Cap ex U.S index. It has a low ER 0f 0.19%
SFILX is a mutual fund that follows the fundmentally weighted Russell RAFI Fundamental Developed ex-U.S. Small Company Index. It has an ER 0f 0.50%.
If you really want small cap value then go with SFILX because SCHC is capitilization weighted and will not give you any value tilt. The Rafi index will give you some value tilt.
Search found 788 matches
- Fri Aug 29, 2014 2:26 pm
- Forum: Investing - Theory, News & General
- Topic: SCHC vs. SFILX
- Replies: 4
- Views: 1287
- Thu Aug 21, 2014 9:59 am
- Forum: Investing - Theory, News & General
- Topic: Bridgeway Omni SCV (BOTSX) vs PXSV
- Replies: 33
- Views: 4745
Re: Bridgeway Omni SCV (BOTSX) vs PXSV
Thanks again Robert. I don't think anyone can be sure where the exact sweet spot is for reconstitution. We will have to see if the techniques Bridgeway and DFA utilize completely compensate versus only partially mitigate the value in less frequent trading and reconstitution.
- Wed Aug 20, 2014 8:40 am
- Forum: Investing - Theory, News & General
- Topic: Your biggest "Missed Money" event that still kills you?
- Replies: 102
- Views: 14198
Re: Your biggest "Missed Money" event that still kills you?
Never really traded individual stocks for myself, but I did some for my mom. I bought her approx $48k of APPL when it was at $12 a share presplit somewhere before or after the turn of the century. Sold later for a modest profit as I started to learn and read about indexing, but well before the stock took off. Mom and dad are fine, but they would be just slightly better.
- Wed Aug 06, 2014 1:00 pm
- Forum: Investing - Theory, News & General
- Topic: Starting a Lazy Portfolio Now
- Replies: 21
- Views: 4375
Re: Starting a Lazy Portfolio Now
Two good articles on this topic are linked below:
Should you invest your money all at once or spread it out?
4 Rules for Investing a Lump Sum
Both of these and more can be found on Wiki page for Dollar cost averaging. Like establishing an asset allocation that you personally can stay the course with, there is no one size fits all right answer.
Should you invest your money all at once or spread it out?
4 Rules for Investing a Lump Sum
Both of these and more can be found on Wiki page for Dollar cost averaging. Like establishing an asset allocation that you personally can stay the course with, there is no one size fits all right answer.
- Mon Aug 04, 2014 2:58 pm
- Forum: Investing - Theory, News & General
- Topic: Do I need a small cap index if I already have total market ?
- Replies: 58
- Views: 8071
Re: Do I need a small cap index if I already have total mark
The simple answer is no a small cap fund (VISVX or NAESX) is not required if you already have Vanguard Total Market Index VTSMX.
Many people tilt to small cap value as your proposed portfolio would. Some do extreme tilts such as the Larry portfolio, which is what I have used for the last 2-3 years. None are necessary. As Taylor states there are many roads to Dublin. Your savings rate and your ability to stay the course under extreme circumstance, both positive and negative, will mean much more over the long haul.
Many people tilt to small cap value as your proposed portfolio would. Some do extreme tilts such as the Larry portfolio, which is what I have used for the last 2-3 years. None are necessary. As Taylor states there are many roads to Dublin. Your savings rate and your ability to stay the course under extreme circumstance, both positive and negative, will mean much more over the long haul.
- Thu Jul 24, 2014 6:15 am
- Forum: Investing - Theory, News & General
- Topic: Due diligence on RAFI Pure Small Value
- Replies: 189
- Views: 28832
Re: Due diligence on RAFI Pure Small Value
Essentially Longinvest part II, but even worse due to carrying over the same mistake. Not even 6 post up from Steve's post is an excellent post from bernston on just this topic. I guess when you feel like you must convert or educate the unwashed there are times when reading and have a conversation take a back seat to teaching.steve_14 wrote:Hmm, maybe the presence of lower cost, better performing alternatives? PXSV lifetime to date vs Vanguard SV (I'll use investor shares to give PXSV a little break):grap0013 wrote:Multi-factor value sort with a backdoor load on profitability thru P/CF and P/E. It even has a Price/5 year "value" component that PE10 folks can appreciate. What's not to like?
- Sat Jul 19, 2014 4:10 pm
- Forum: Investing - Theory, News & General
- Topic: a close look at value and momentum
- Replies: 259
- Views: 27525
Re: a close look at value and momentum
Completely agree. As Taylor is fond of saying there are many roads to Dublin. I would like to take the time to thank for your contributions to the board over the years.Robert T wrote: Again its a personal choice on what actions, if any, we should take. Personally, I have no problem with someone holding a (world) market index fund as their only stock holding, just as I don't have an issue with someone holding the iShares MSCI USA Momentum fund. I can see a rationale for either. The key is to make a decision that you can stick with over the long term. This, in my view, is one of the key's to investment success.
Robert
- Sat Jul 19, 2014 11:25 am
- Forum: Investing - Theory, News & General
- Topic: a close look at value and momentum
- Replies: 259
- Views: 27525
Re: a close look at value and momentum
The iShares fund has matched fairly closely the returns of the MSCI Momentum Index since the funds inception. If the iShares MSCI Momentum Fund has the same long-term characteristics (factor loads, including its close to zero alpha) as its underlying index had from Jan 1980 then it will capture part of any momentum premium (will provide relatively pure exposure to momentum). In this case we have no reason to believe the fund will not capture part of the momentum premium. Sounds appealing, let's see what kind of premium it's picked up so far for investors: http://i60.tinypic.com/dc7twx.jpg Awesome (200 year!) backtest translates into unimpressive real fund results, exhibit #235334. Errr...a few months of returns does not a statistically sig...
- Fri Jul 18, 2014 1:56 pm
- Forum: Investing - Theory, News & General
- Topic: Do any bogleheads hold the "Larry Portfolio?"
- Replies: 19
- Views: 4739
Re: Do any bogleheads hold the "Larry Portfolio?"
Yes I do for around 2 years now and I am happy with it.
- Thu Jul 17, 2014 3:08 pm
- Forum: Investing - Theory, News & General
- Topic: Bet it ALL on Small Cap Value when you're young
- Replies: 64
- Views: 10681
Re: Bet it ALL on Small Cap Value when you're young
Target2030
Those 2 funds are only available through BAM affiliated advisors. Larry's group helped to devise them and they get sole access, as far as I know.
Those 2 funds are only available through BAM affiliated advisors. Larry's group helped to devise them and they get sole access, as far as I know.
- Thu Jul 17, 2014 10:34 am
- Forum: Investing - Theory, News & General
- Topic: was Bogle right about ETFs?
- Replies: 26
- Views: 3953
Re: was Bogle right about ETFs?
Exactly. ETFs are fine and here to stay. How people use them in regards to investor psychology and decision-making can be the problem.kenner wrote:Perhaps Mr. Bogle is more concerned about investor psychology and decision-making. Decades of real knowledge prove the importance of these factors.
- Thu Jul 17, 2014 10:32 am
- Forum: Investing - Theory, News & General
- Topic: was Bogle right about ETFs?
- Replies: 26
- Views: 3953
Re: was Bogle right about ETFs?
About trading ETFs - yes Bogle was right. ETFs were designed to be sold and bought, sold and bought, etc... Bogleheads don't buy products designed to be sold. For expats who can't purchase mutual funds, the creation of ETFs is quite significant. I like ETFs because I know what price I am buying at. I didn't like waiting to find out what price I got it at at the end of the trading day. Yeah I payed a spread but there are more up days than down...not only in a bull but generally markets fall more quickly. So given the fact that ERs on ETFs are lower or comparable to the lowest cost mutual funds, and I'll more likely be buying into a rising market and that ER over time makes more difference than spreads often do...there is no reason for me to...
- Wed Jul 16, 2014 5:20 am
- Forum: Investing - Theory, News & General
- Topic: Persistence of SV performance
- Replies: 72
- Views: 6998
Re: Persistence of SV performance
Real funds have to deal with slippage and transaction costs, that will reduce returns even though it won't show up in an index. Large caps are generally super liquid, and small caps less so. Only looking at indexes will make small cap look better then it should. A fair response would be to find a different fund that performed better (DFA, maybe?), but pointing to the index is totally not a fair response. Yes and no. Vanguard keeps switching the index that their small value fund follows. They have arguably upgraded in making this last switch, but their transaction cost were increased and returns somewhat decreased from the 3 relatively recent changes. Not to mention different indexes can and do perform differently. Going forward, unless the...
- Tue Jul 15, 2014 6:52 pm
- Forum: Investing - Theory, News & General
- Topic: Bet it ALL on Small Cap Value when you're young
- Replies: 64
- Views: 10681
Re: Bet it ALL on Small Cap Value when you're young
Did anyone call beta the enemy? It seems to me that saying that there are other factors to consider beyond beta is is far cry from saying beta is bad?Browser wrote:If BETA is the enemy, why not a low-beta fund or allocating to low-beta sectors: consumer durables, heathcare, and utilities?
- Tue Jul 15, 2014 6:47 pm
- Forum: Investing - Theory, News & General
- Topic: Due diligence on RAFI Pure Small Value
- Replies: 189
- Views: 28832
Re: Due diligence on RAFI Pure Small Value
And everyone else but you seems to realize that different indices can have wildly different returns even in the same asset class. 1 index is not a sufficient proxy for all the others.longinvest wrote:I'm saying that the change of index does not change the fact that PSVX was a small-value fund since inception.
You should take this up with Vanguard, who I like and use, because they do it as much or more than anyone over the last decade.longinvest wrote: It is so convenient for a fund to change its index when the old one didn't work well.
- Tue Jul 15, 2014 6:42 pm
- Forum: Investing - Theory, News & General
- Topic: a close look at value and momentum
- Replies: 259
- Views: 27525
Re: a close look at value and momentum
Countmein DFA and Bridgeway use MOMENTUM screens similarly, screening out negative MOM stocks and using positive MOM signals to have preference in order of what gets sold when it reaches sell range. AQR uses both long and long short momentum. Very different DFA adds profitability screens. AQR uses profitability as FACTOR. Bridgeway indirectly incorporates profitability by using multiple value metrics including p/cf which is a quality/profitability factor. Their funds have more exposure to the profitability factor than the DFA funds did before they started screening for it. Hope that helps Larry Larry The AQR core funds are long only in the momentum approach correct? Specifically the fund I see as the most directly comparable to DFA and the...
- Tue Jul 15, 2014 6:32 pm
- Forum: Investing - Theory, News & General
- Topic: Due diligence on RAFI Pure Small Value
- Replies: 189
- Views: 28832
Re: Due diligence on RAFI Pure Small Value
If anybody is interested, here is the TellTale chart of PXSV vs VTSAX : http://i58.tinypic.com/x4rq5u.jpg :oops: From the OP by Robert T. "This is now tracked by the Powershares Fundamental Pure Value Series (PXSV) starting June 16, 2011 (note that PXSV tracked a different index before June 2011, so any historical analysis of the fund before this date is a bit meaningless. We need to look at the underlying RAFI index to get a sense of the longer term characteristics)." And something that I believe was pointed out to you just yesterday or the day before in another thread. :annoyed Doesn't "SV" in PSVX mean Small-Value? Now, you're telling me that we must also only look at 1 or 2 years performance?! Really? You have to be...
- Tue Jul 15, 2014 3:22 pm
- Forum: Investing - Theory, News & General
- Topic: what is "at-cost investing" ?
- Replies: 8
- Views: 1757
Re: what is "at-cost investing" ?
It means that Vanguard will and have both lowered and raised expense ratios on existing funds as the cost to run the fund dictate.
Other providers may use certain ETFs and mutual funds as loss leaders or lower expense ratios below thier cost simply to undercut Vanguard. Vanguard doesn't do that. Although, in general Vanguard's expense ratios are so low that even when undercut the difference is real world $$ out of our pockets is minimal.
Other providers may use certain ETFs and mutual funds as loss leaders or lower expense ratios below thier cost simply to undercut Vanguard. Vanguard doesn't do that. Although, in general Vanguard's expense ratios are so low that even when undercut the difference is real world $$ out of our pockets is minimal.
- Tue Jul 15, 2014 11:57 am
- Forum: Investing - Theory, News & General
- Topic: Small cap valuations "appear to be stretched"
- Replies: 11
- Views: 1893
Re: Small cap valuations "appear to be stretched"
This is just as damning for Bogle's corparate bond suggestions.
- Tue Jul 15, 2014 11:31 am
- Forum: Investing - Theory, News & General
- Topic: Persistence of SV performance
- Replies: 72
- Views: 6998
Re: Persistence of SV performance
If Vanguard is any good at tracking an index, which most would agree they are, then the new CRSP indices they switched to seem to follow more along the lines of what Larry has stated. See Ketawa's post in this very thread. Steve's often repeated data is now outdated unless you find another small value fund based on the MSCI indices. Beyond that there are other decent options besides DFA or Vanguard open to regular investors for these type funds.Scandium wrote:So, there is a SV premium, but retail investors can't capture it through funds from Vanguard etc?
Ok.. Interesting I guess, but not really actionable advice for 99% of people here.
Ketawa's reply to Steve
- Wed Jul 09, 2014 12:59 pm
- Forum: Investing - Theory, News & General
- Topic: How many veteran investor have LARGE MAJORITY in three-fund?
- Replies: 56
- Views: 6046
Re: How many veteran investor have LARGE MAJORITY in three-f
I have a large majority in a very simple 4 fund portfolio, but it is the Larry portfolio.
- Tue Jul 01, 2014 2:32 pm
- Forum: Investing - Theory, News & General
- Topic: Suggestions for teaching new MDs about finance?
- Replies: 39
- Views: 4574
Re: Suggestions for teaching new MDs about finance?
Do you have a reference for these percentages? I have seen and used them when talking to residents/fellows before, but I am not sure how or from where they originate.LowER wrote: And to carry this a step further, you might let them know that 50% of docs will change jobs in their first 2 years out of training and 75% within 3 years.
- Mon Jun 30, 2014 9:27 am
- Forum: Investing - Theory, News & General
- Topic: Suggestions for teaching new MDs about finance?
- Replies: 39
- Views: 4574
Re: Suggestions for teaching new MDs about finance?
What are people's opinions on investment services like Betterment or FutureAdvisor for MDs (or non-MDs) who are totally incapable of being trusted with their own money? I wouldn't use one, but I know many MDs who THINK they are good with money (probably cocky because they're good at lots of other things already), but then end up doing stupid things like investing in a single pharmaceutical stock, or not putting money in at all, because they are waiting until they have time to start learning about how to invest. I generally think that people can do fine on their own, but these services do at least protect you from yourself a bit. They don't really add much value compared to a target-date fund, or a simple three-fund portfolio, but they do g...
- Sun Jun 29, 2014 1:29 pm
- Forum: Investing - Theory, News & General
- Topic: Suggestions for teaching new MDs about finance?
- Replies: 39
- Views: 4574
Re: Suggestions for teaching new MDs about finance?
It is the exact opposite in general. There is too much depth in way too many places for any one physician to come close to being an expert in all of them. In general, unless someone is a known slacker or near-do-well, we learn to implicitly trust the specialist in other fields, i.e nephrology, cardiology, radiology, dermatology, etc... All too many MD's are, therefore, a perfect victim for an unscrupulous financial advisors (the purported specialist).livesoft wrote: I would have thought that MDs are trained to be skeptical of everything they are taught in med school as well as their teachers and other doctors. Does this not extend to other "experts" that they may come in contact with?
- Tue Jun 24, 2014 2:08 pm
- Forum: Investing - Theory, News & General
- Topic: Are small and mid caps necessary?
- Replies: 35
- Views: 3864
Re: Are small and mid caps necessary?
Keep reading. You have plenty of time, years even to decide if you would like to tilt or not. Maximize your savings rate in the interim as that will vastly outweigh your asset allocation choices in regards to the total $$ invested in your account for the immediate future. Read Bogle, read Swedroe, read Ferri, read Bernstein. Recommended reading list Oh and read this forum. Many will struggle back and forth with versions of this question. If the PRCA option is free, I would say use it and use the Schwab Total US market, total international and Total bond funds for now, until you find the path you are most likely to stick with through the years of bull and bear markets. I went with a highly tilted Larry portfolio, but as Taylor is fond of say...
- Fri Jun 20, 2014 11:27 am
- Forum: Investing - Theory, News & General
- Topic: Betterment launches tax loss harvesting
- Replies: 31
- Views: 11067
Re: Betterment launches tax loss harvesting
Hi Andy - Do keep in mind that (unless you never sell the investments) saving on capital gains now means you'll have to pay them later, perhaps even at higher rates. However, in your case (using them along them way), you do get a tax deferral benefit. Merely incurring and maintaining the loss would not. I TLH occasionally, and have enough carryforwards from 2009 to maintain a few more years of income deductions. Beyond that, though, I wouldn't "pay extra" for them. Also keep in mind that deducting at your top marginal rates now and then paying them later during your retirement years, when most people will be in a lower tax bracket, is not a bad deal for the majority of folks. I agree that time will tell on the implementation of t...
- Thu Jun 12, 2014 11:34 am
- Forum: Investing - Theory, News & General
- Topic: Why is Tilting and Slice&Dice so popular in this forum?
- Replies: 110
- Views: 10373
Re: Why is Tilting and Slice&Dice so popular in this forum?
I am aware that increasing risk has the potential to substantially increase returns for long term horizons. Not the potential--the near certainty. Make the horizon long enough, and the high-risk, high-return asset always dominates in all outcomes. If your horizon is 30+ years, seriously consider tilting. Otherwise you're not efficiently using your horizon. If you're less than 30 years out from retirement, then that can be a good argument to not tilt, but only if you're <30. >30: tilt. I actually tilt heavily with a Larry portfolio, but, IMO, most are more certain to do better with a total market approach because the behavioral aspect of investing will cause them to underperform with a high tilt. That doesn't make them wrong or deficient or...
- Wed Jun 11, 2014 12:14 pm
- Forum: Personal Consumer Issues
- Topic: Any [iPhone] "Apps" you like?
- Replies: 69
- Views: 11869
Re: Any [iPhone] "Apps" you like?
If you have iOS 7 or greater than a flashlight is now built into the OS under the Control Center, and unless you have an iPhone 4 or earlier I can not think of a reason not to upgrade to iOS 7.1. Very convenient and can be accessed from the lock screen.SpringMan wrote:Another useful app is a flashlight app, there are many of them. They turn your camera flash into a flash light which can be helpful when caught in the dark.
I will toss in another vote for PaperKarma as a free and easy to use way to limit unwanted mail.
- Mon Jun 09, 2014 8:19 am
- Forum: Investing - Theory, News & General
- Topic: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX)
- Replies: 23
- Views: 3276
Re: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX
I would grap.grap0013 wrote:I have access to mutual funds only in a Fido brokerage account. My SCV preference is PXSV, but I hold ~50K of SFSNX due to ETF restrictions. OP, now you have me thinking...should I swap out SFSNX for QSMLX? I think so...? Only a $500 minimum for QSMLX.
OT question?
I have an account at Fido, what are the ETF restrictions you are referring to that limit your purchases of PXSV? I predominantly use my Wells Fargo PMA account for investing.
- Fri Jun 06, 2014 2:28 pm
- Forum: Investing - Theory, News & General
- Topic: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX)
- Replies: 23
- Views: 3276
Re: RAFI SV/AQR SC Momentum vs AQR Core (PXSV/ASMOX vs QSMLX
I sort of agree with grap, dump it all in PXSV or QSMLX and move on. I would likely choose QSMLX if forced due to the management team and their dedication to implementing the best factors with the hopes that the ER is decreased over time, but PXSV, with its relatively lower ER makes it a coin toss.
- Fri Jun 06, 2014 2:16 pm
- Forum: Investing - Theory, News & General
- Topic: GMO's 7 year predictions
- Replies: 8
- Views: 2832
Re: GMO's 7 year predictions
Ed, on page 8 you use various forms of "ith" and "tth", some with a superscript "th" some without. The second sentence of the "MAKING THE INVESTMENT SHARE A FUNCTION OF PREDICTED RETURN. LONG ONLY " section on page 8 carries this inconsistency forward as well. The word "raises" is also misspelled under the exhibit 5 section. Interesting paper, btw. I have considered using the GMO data to alter the relative weight of my three equity fund larry portfolio in a fashion similar to exhibit 6 RL. I am considering doing so really only with new purchases or during rebalances with a 5/25 rule, so as to minimize transaction cost on already invested money. I am in a relatively accelerated accumulation p...
- Wed Jun 04, 2014 2:58 pm
- Forum: Investing - Theory, News & General
- Topic: Which is superior? Slice & Dice or [Total Market]?
- Replies: 48
- Views: 5608
Re: Which is superior? Slice & Dice or lump sum?
agreedrob wrote:We collectively burn a lot of bits on that topic..... but the answer really is whatever works for you. In the end, it will not matter much. It's dwarfed by other more important topics like saving and not making rash changes as the talking heads blurt on.
I utilize a version of the Larry portfolio, BUT if you are going to DIY this and not have an advisor as an emotional buffer between the investor and rash decisions then pick whichever of those best fits you and stick to that plan. Really any of the lazy portfolios would be fine, as would a lifestyle or target date fund.
- Mon Jun 02, 2014 12:09 pm
- Forum: Investing - Theory, News & General
- Topic: No BOSVX or DFSVX -- what other SCV choices?
- Replies: 54
- Views: 5927
Re: No BOSVX or DFSVX -- what other SCV choices?
DGS is one of the few completely small value oriented (via the dividend screen) emerging markets funds I know of that is generally available. That is currently what I use in tax advantaged. For what it is worth, Swedroe has most frequently recommended a broad value oriented EM fund and not specifically small value, as opposed to his International and US small value recommendations.Browser wrote: It looks like you're right. It looks like another EM etf, TLTE, has a smaller average cap ($31B vs. $44B). It is advertised as being tilted toward value and small. Morningstar shows both as value-tilted large-cap. EVAL is more value tilted than TLTE.
- Mon Jun 02, 2014 10:44 am
- Forum: Investing - Theory, News & General
- Topic: No BOSVX or DFSVX -- what other SCV choices?
- Replies: 54
- Views: 5927
Re: No BOSVX or DFSVX -- what other SCV choices?
Tell me -- why is a possible closing of an ETF a problem? If it closes, you get your money right? Then you invest it elsewhere. Am I missing something here? It's a problem only in taxable due to capital gains taxes. Thanks. I'm also considering EVAL, which is a SCV emerging ETF. It has very small AUM and probably a large spread. But since I would be buying in in my Roth and probably not rebalancing often, and there would be no tax consequences if it closes, are there any other reasons not to buy it? One plus is that the fund trading impact on market price would probably be pretty minimal because of the small AUM - correct? Unless I misunderstanding your acronym, as far as I can tell EVAL is not a small cap value (SCV) emerging fund, but a ...
- Mon Jun 02, 2014 10:26 am
- Forum: Investing - Theory, News & General
- Topic: No BOSVX or DFSVX -- what other SCV choices?
- Replies: 54
- Views: 5927
Re: No BOSVX or DFSVX -- what other SCV choices?
Would you choose the the AQR Small Cap Momentum Fund (which screens for size and positive momentum), over the AQR Small Cap Core Equity Fund (which screens for size, value, momentum and profitability)? If so, why? That's something I hadn't considered. I will have to do some more research before making a final decision on QSMLX or a combination of PXSV and ASMOX. For that matter, I might look into moving about half my allocation in VSS to the AQR International Core Equity Fund (QICLX). I still only have about $45k in my Roth IRA, so these decisions won't make much of a difference yet. :sharebeer I am considering a similar move from PDN to QICLX as well as utilizing AQRs Emerging Core Equity Fund QEELX for the emerging component of my Larry ...
- Mon Jun 02, 2014 10:22 am
- Forum: Investing - Theory, News & General
- Topic: No BOSVX or DFSVX -- what other SCV choices?
- Replies: 54
- Views: 5927
Re: No BOSVX or DFSVX -- what other SCV choices?
Thanks Larry,larryswedroe wrote:vesalius
FWIW I would choose the multi-factor one. Diversifying exposure to factors is good idea
Larry
That was my choice and general inclination. I was looking to either learn a little from Ketawa or potentially alert him to the QSMLX option, if he has access to it.
- Mon Jun 02, 2014 9:29 am
- Forum: Investing - Theory, News & General
- Topic: No BOSVX or DFSVX -- what other SCV choices?
- Replies: 54
- Views: 5927
Re: No BOSVX or DFSVX -- what other SCV choices?
Right now, I use PXSV and VBR in approximately equal amounts (in tax-advantaged). I may reduce my holdings in VBR to add an allocation to the AQR small cap momentum fund. I would probably use IJS or VIOV in a taxable account due to their lower yield, higher % of qualified dividends, and concerns over changes to the ER or fund closing for PXSV. I don't like RZV due to its small number of holdings and large negative loading on momentum. The negative momentum loading wipes out much of the expected returns from higher loadings on HmL and SmB. Would you choose the the AQR Small Cap Momentum Fund (which screens for size and positive momentum), over the AQR Small Cap Core Equity Fund (which screens for size, value, momentum and profitability)? If...
- Tue May 27, 2014 4:36 pm
- Forum: Investing - Theory, News & General
- Topic: How diversified is the Larry Portfolio
- Replies: 40
- Views: 5688
Re: How diversified is the Larry Portfolio
Maybe somewhere in the time I've been on the board I've missed it (please accept my apologies in advance), but other than the 2 funds you mention DFA and Bridgeway Omni SV, are there any Vanguard funds or ETF's that could be subsituted in place of them if one does not have access to DFA? For US Small Cap Value VIOV or IJS are great candidates. Rick Ferri uses IJS actually. http://etfs.morningstar.com/quote?t=viov For International Vanguard's VSS does an OK job I would think. There may be better though at this point: http://portfolios.morningstar.com/fund/summary?t=VSS®ion=usa&culture=en-US&ownerCountry=USA PXSV is another great candidate for US Small cap. Rick Ferri also recently suggested it in this post . the various flavo...
- Mon May 19, 2014 1:46 pm
- Forum: Investing - Theory, News & General
- Topic: a tale of two small value funds
- Replies: 30
- Views: 4991
Re: a tale of two small value funds
Re the extra fees for DFA ---as I said, mostly IMO that's sort of a bogus issue because there are advisors who will sell you "access" so you don't need to pay for the other funds in the portfolio. Just tell them that's all your assets if you want. I've done fairly extensive research into this. The cheapest option I could find for someone with less than half a million in assets was about 50 basis points. I don't need an advisor to build a bond ladder or to hold my hand through a market crash, so I don't value any of the other services an advisor would provide. So for investors like me, any returns for a DFA funds should have 50 basis points annually subtracted from their returns. If you do that for DFSVX, the returns are not parti...
- Thu May 15, 2014 4:34 pm
- Forum: Investing - Theory, News & General
- Topic: High Net Worth Investing
- Replies: 84
- Views: 15440
Re: High Net Worth Investing
Agreed aside from the gold.matjen wrote:If I had your problems I would do the Larry Portfolio (search it but basically 70% short term/medium term government bonds/munis and 30% SCV equities in US, World and Emerging Markets). I would throw in a dose of gold stored in a safety deposit box.
To js1884, read this very short book released today from Larry Swedroe: Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns With Less Volatility. Pay particular attention to Appendix D: Enough and the idea of marginal utility of wealth.
- Wed May 14, 2014 4:47 pm
- Forum: Investing - Theory, News & General
- Topic: "Smart Beta" ?
- Replies: 12
- Views: 2213
Re: "Smart Beta" ?
Even though it means nothing in the grand scheme of things, I really like the term Strategic Beta as middle ground between Spindex and Smart Beta proponents.
- Wed Apr 30, 2014 1:24 pm
- Forum: Investing - Theory, News & General
- Topic: Mea culpa [100% stock at 50]
- Replies: 46
- Views: 8545
Re: Mea culpa [100% stock at 50]
Admitting you have/had a problem is the first step. Correcting it is a good next step, but not repeating it is really important.
This is one of the ways advisors add a lot of value for the majority of people.
This is one of the ways advisors add a lot of value for the majority of people.
- Fri Apr 18, 2014 4:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: practicing medicine in Texas...
- Replies: 56
- Views: 16145
Re: practicing medicine in Texas...
You cost of living should be significantly lower in TX, regardless of the city, than it is in San Diego. Your state income taxes go to $0 and if you rent your property taxes are great here in TX too. The Malpractice Laws here are much better and sensible than Ca also. Your pay should be similar, potentially a little lower, but when COL and taxes are taken into account you will almost certainly come out ahead and have less malpractice liability as well.
If you have no overwhelming attachment to CA or San Diego, I would definitely explore your options here and use the Job hunt to check out the cities you might want to live.
If you have no overwhelming attachment to CA or San Diego, I would definitely explore your options here and use the Job hunt to check out the cities you might want to live.
- Mon Apr 14, 2014 4:47 pm
- Forum: Investing - Theory, News & General
- Topic: Schwab Fundamental Index Funds
- Replies: 11
- Views: 7406
Re: Schwab Fundamental Index Funds
another factor may be related to the fact that these 2 funds follow different versions of the Rafi EM index, FTSE and Russell, which have slightly different fundamental weightings and reconstitute in significantly different ways.lazyday wrote:It looks like fundamental EM ETF PXH did even worse than Schwab's open end fundametal EM fund SFENX: http://www.bogleheads.org/forum/viewtop ... 8#p2010343stlutz wrote:Their open-end fundamental index funds have tended to lag their benchmarks by a fair amount more than their ER, except in the US large cap space. On the ETFs, I'd want to wait and see what their tracking error vs. their underlying index ends up being.
Part of that is from the higher ER.
- Mon Apr 14, 2014 4:33 pm
- Forum: Investing - Theory, News & General
- Topic: Thoughts on iShares Enhanced ETF [IELG, IESM, IEIL, IEIS]
- Replies: 16
- Views: 3701
Re: Thoughts on iShares Enhanced ETF [IELG, IESM, IEIL, IEIS
From a recent ETF.com article it is my understanding that iShares is aggressive in securities lending. This article also does a great job explaining the reasons a fund might have positive or negative tracking error.lazyday wrote:There's noise in fund returns so my guess is luck. I'll be pleasantly surprised if 3 year TE isn't highly negative.comeinvest wrote:How can IEMG and EEMS achieve their positive tracking error?
For funds that mostly hold liquid stocks, long term positive TE might result from trading futures, lending shares, and luck when not following the index closely.
Maybe there's other ways. I don't know if the ETF basket fee can result in profit for the fund.
The mainly attention grabbing title of that article is ETF Expense Ratios Don’t Matter.
- Thu Apr 10, 2014 4:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Getting over huge mistakes
- Replies: 30
- Views: 4858
Re: Getting over huge mistakes
I want to reiterate what other stated about not becoming too spartan. You likely have already, but make sure your spouse is OK with any drastic changes because if you don't she could ultimately feel punished for what you admit are mainly your past mistakes. Leave room for a couple of date nights out with the wife each month and maybe play golf at the public course when you have the time and feel like it. I am pretty sure you are confusing flexible spending account (FSA), which is usually use it or lose it, and an Health savings account (HSA) linked to a high deductible health plan (HDHP) which is not not use it or lose it. See the Wiki link: Health savings account (HSA) I use Eli Lilly Federal Credit Union to invest the residual money in my...
- Thu Apr 10, 2014 6:53 am
- Forum: Personal Investments
- Topic: Best Tax free Muni Bond fund
- Replies: 4
- Views: 1154
Re: Best Tax free Muni Bond fund
I prefer the Baird Institutional Intermediate Municipal Bond Fund (BMBIX), but either it or the admiral shares of Vanguard intermediate or Limited would be my next choice.
The Baird Fund has a slightly lower duration and holds higher quality, safer bonds (AAA and prerefunded) than the Vanguard intermediate fund. ER is slightly higher at 0.30.
Here is a prior thread comparing the 2. Baird Intermediate Munis VS Vanguard Intermediate Munis
The Baird Fund has a slightly lower duration and holds higher quality, safer bonds (AAA and prerefunded) than the Vanguard intermediate fund. ER is slightly higher at 0.30.
Here is a prior thread comparing the 2. Baird Intermediate Munis VS Vanguard Intermediate Munis
- Fri Apr 04, 2014 7:10 am
- Forum: Investing - Theory, News & General
- Topic: Which Muni Bond Fund in Taxable account ??
- Replies: 14
- Views: 2464
Re: Which Muni Bond Fund in Taxable account ??
+1 on Baird Intermediate Municipal (BMBIX). Holds higher quality municipals than the comparable Vanguard fund.
- Wed Apr 02, 2014 2:01 pm
- Forum: Personal Investments
- Topic: Assistance with purchasing Fidelity funds
- Replies: 9
- Views: 1607
Re: Assistance with purchasing Fidelity funds
1. Clean up book keeping and transfer her HER Traditional IRA 2 with CHASE to fidelity.
2. Consider the iShares Core ETF's at fidelity in taxable. Free to trade and ETF's (outside of Vanguard where they are exactly the same as their corresponding MF) are equal or better than equivalent MF's in taxable accounts.
- ISHARES CORE S&P TOTAL U.S. STOCK MARKET ETF (ITOT) er 0.07% with a tracking error of 0.04
- ISHARES CORE MSCI TOTAL INTERNATIONAL STOCK ETF (IXUS) er 0.16%
3. decide if the foreign tax credit is something you want to take advantage of. If so, shuffle your funds around and buy as much of your 25% total international etf/fund in taxable.
2. Consider the iShares Core ETF's at fidelity in taxable. Free to trade and ETF's (outside of Vanguard where they are exactly the same as their corresponding MF) are equal or better than equivalent MF's in taxable accounts.
- ISHARES CORE S&P TOTAL U.S. STOCK MARKET ETF (ITOT) er 0.07% with a tracking error of 0.04
- ISHARES CORE MSCI TOTAL INTERNATIONAL STOCK ETF (IXUS) er 0.16%
3. decide if the foreign tax credit is something you want to take advantage of. If so, shuffle your funds around and buy as much of your 25% total international etf/fund in taxable.
- Sun Mar 30, 2014 12:38 pm
- Forum: Investing - Theory, News & General
- Topic: diff between "pre-refunded" and "escrowed to maturity" munis
- Replies: 3
- Views: 5888
Re: diff between "pre-refunded" and "escrowed to maturity" m
From reading the definitions only, Pre-refunded always use a safe government issued bond as the ecrowed second bond. Escrowed to Maturity bonds also use second bond issue escrow and some may use a safe government issued bond as the ecrowed second bond not all do. Government obligations, typically U.S. Treasuries, used in all Pre-refunded bonds do not mean the same thing as the short-term, low-risk debt securities used for Escrowed to Maturity bonds.
So based off these definitions only, while all Pre-refunded bonds can be considered Escrowed to Maturity bonds, not all all Escrowed to Maturity bonds can be considered Pre-refunded.
So based off these definitions only, while all Pre-refunded bonds can be considered Escrowed to Maturity bonds, not all all Escrowed to Maturity bonds can be considered Pre-refunded.